How to Buy USDS and Is USDC Crypto a Good Buy?

There are two methods of obtaining USDS coins – through the supported centralized exchanges, or via Sky Protocol’s platform as a swap for USDC, USDT, or DAI. Whether or not USDS is worth buying is a different issue from whether USDC is worth buying as these are two separate assets released by two separate issuers. USDS is the stablecoin issued by the decentralized protocol with the native yield function known as the Sky Savings Rate, whereas USDC is the fiat backed stablecoin issued by Circle.

Key Takeaways

• USDS tokens can be acquired either through the Sky Protocol Peg Stability Modules in exchange for USDC, USDT, or DAI, or through USDS purchases on cryptocurrency exchanges.
• USDS tokens and USDC tokens are two different assets. USDS tokens are issued by the decentralized Sky Protocol, whereas USDC tokens are issued by the regulated US-based company Circle.
• Both USDS and USDC are stablecoins whose purpose is to keep a constant one-dollar value. Therefore, the issue of which of these is worth buying depends on features and intended use.
• One of the advantages of USDS tokens is that they provide access to native yield through the Sky Savings Rate and sUSDS, which does not apply to USDC.
• The USDC stablecoin has high integration into all the regulated exchanges and traditional financial systems due to its popularity.
• According to Allium, the on-chain circulating supply of USDS tokens as of August 2026 was around 6.37 billion dollars, whereas USDC is one of the largest stablecoins in the world by market capitalization.
• Both mentioned stablecoins are available for purchases by Canadian customers via the relevant exchanges, but the assessment of the availability of each one on various platforms and tax rules should be performed first.

If you plan to buy USDS and you wonder whether you should buy USDC, then all the answers to your questions are provided in this article using verified data.

What Is USDS?

USDS is the Sky Protocol name for the US Dollar pegged stablecoin issued by the Sky Protocol decentralized finance system, which is the rebranding of MakerDAO. Every USDS coin is expected to be worth $1 and be backed by the collateral in the form of cryptoassets and off-chain assets kept by means of smart contracts.

USDS is a new generation of DAI, and they are interchangeable in the 1:1 ratio. On top of that, USDS is a stablecoin, as well as the full access pass to the Sky Protocol network with earning opportunities via the Sky Savings rate and governance through SKY token.

How to Buy USDS: Step by Step

Here are a few ways to acquire USDS, depending on what crypto assets you currently own and on the trading platform you use.

Option 1: Swap Through Sky Protocol’s Official Platform

1. Create a suitable crypto wallet that should support the Ethereum blockchain or any other blockchain that supports the USDS token, such as Arbitrum, Base, or Solana.
2. Make sure there is a deposit of USDC, USDT, or DAI tokens in your wallet.
3. Connect your wallet to the website of the Sky Protocol.
4. Swap your USDC, USDT, or DAI for USDS using the Peg Stability Module.
5. Make sure the swap was successful and that you have USDS in your wallet.

Option 2: Buy on a Supporting Cryptocurrency Exchange

USDS can be traded on different cryptocurrency exchanges. The procedure that one has to undertake in order to trade in USDS is similar across all the exchanges that support USDS and it is comprised of the following steps:

1. Create an account and verify it.
2. Fund your account through your bank account, credit card or even another cryptocurrency.
3. Visit the trading page and select USDS trading pairs.
4. Place your trade via market or limit order.
5. Review your balance after you have placed your trade.

It might be beneficial for the user to find out whether or not the exchange allows trading in USDS and accepts Canadian users before signing up for the account.

Option 3: Convert Existing DAI to USDS

And in case you happen to have some DAI tokens on hand, conversion from DAI to USDS becomes one of the simplest options to acquire USDS. Sky Protocol offers an easy and instantaneous 1:1 converter that will help you convert your DAI to USDS without needing to use another exchange platform.

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Is USDS the Same as USDC?

This is one of the most frequently asked questions because of the similar sounding names and the similar function both tokens perform. However, these tokens are completely different; they were developed by different companies.

The price movement of both tokens is identical since both tokens should always be priced at one dollar per one token. Differences are in their issuing mechanisms, collateral and additional services offered by their ecosystems.

Is USDC Crypto a Good Buy?

As usual, USDC tends to be discussed together with USDS in literary sources; therefore, we are going to talk about it separately. USDC is developed by Circle, a regulated corporation from the US. It is backed by cash and US Treasury reserves. This token may be regarded as one of the most popular and widely spread stable coins in the crypto market; it is accepted on a lot of exchanges, wallets and payments providers.

Since USDC is a stable coin, the idea of “being a good buy” is different for this asset compared to other cryptocurrencies. USDC was made in order to maintain its value and it is not usually seen as an investment asset that might provide some growth perspectives. On the contrary, it is used as a stable store of value, trading pairs base, or a means of conversion between fiat and crypto currencies.

If you are a fan of regulated and simple solutions, USDC is definitely a good choice for you. But in case you appreciate decentralized features and native yield, there are some functions that USDS possesses while USDC does not. A lot of crypto traders use USDC and USDS tokens simultaneously.

Learn More: USDS (Sky Dollar) Price Prediction: What to Expect

USDS vs USDC: Which Should You Choose?

Your choice of either USDS or USDC will most likely depend on the use case of your funds.

• Go for USDS in case you want to gain from the possibility of yield generation using the Sky Savings Rate, or if you are interested in decentralized governance or partake in the Sky Protocol environment.
• USDC would suit you in case you want to maximize compatibility and usability of the exchange, or in case you want a stablecoin that is centrally issued. In case you need a stablecoin that is broadly used in traditional finance integrations, USDC is the better option.
• You can hold both if you want compatibility of the exchange, as well as the ability to earn yield by using USDS stablecoin.

There is no clear winner between the two. They are both made with the aim of achieving stability of dollar value.

Understanding USDS Trading Pairs and Liquidity

Your trading experience would definitely be much more efficient by knowing how to trade USDS using the Sky Protocol and exchanges where you can trade USDS pairs. Since most popular trading pairs are stable coins, like USDC and USDT, USDS may be exchanged for them without any major slippage at almost 1:1 rate because of their close dollar equivalent.

The thing about liquidity of USDS is that it is located mostly in the Peg Stability Module, which was designed for large volume transactions with reduced slippage. This differs greatly from the liquidity of regular coins that do not have the pegged price because of the possible market movement made by placing large orders due to their volatile nature. The explanation why the conversion of USDS into USDC and vice versa on any available platform results in slippage is the same – they both are priced at one dollar.

It is strongly advised to see the liquidity on the order book of the exchange before carrying out any large transactions.

USDS Availability Across Blockchain Networks

There is also the matter of considering where you will be buying and storing your USDS based on your preference for the particular blockchain network. USDS is native to the Ethereum blockchain and constitutes a considerable proportion of the circulating supply currently available; USDS has since been extended to other blockchains, which include Arbitrum, Base, and Solana through bridging on Sky Protocol.

For those who are purchasing USDS for the sole reason of utilizing it within certain DeFi protocols, it could be worth exploring the idea of whether the DeFi protocol accepts your USDS from the same blockchain network from which you purchased it to avoid bridging your tokens. USDC, for example, is available on several blockchain networks as a result of its longevity and wide adoption in the crypto space, being native on Ethereum, Base, Polygon, and several other networks.

If there is a need for moving your stablecoin across various blockchain networks often, it would be wise to take into consideration the blockchains in which the particular tokens operate natively.

Using USDS and USDC Together in a Portfolio

Rather than choosing between the two currencies USDS and USDC as alternative stablecoins, it is typical for crypto traders to hold both of these currencies in the portfolio of stablecoins.

Thus, due to the wide acceptance of USDC on the payment platforms and exchanges, this currency is useful for making payments and transactions since there is no necessity to pay for conversion of USDS into USDC to make the trade.

However, USDS can also be used to invest some part of the stablecoins into earning interest with the help of the Sky Savings Rate when USDS is converted into sUSDS. Therefore, the combination of USDC and USDS/sUSDS is the way of arranging the portfolio of DeFi users in 2026.

Storing USDS and USDC Safely

After getting one of the above-mentioned stablecoins, a person should think about storage of this asset in accordance with the degree of their activity.

The typical behavior of crypto traders is to keep some amount of stablecoins on the exchange account and transfer big amounts to the hardware wallet.

What to Know Before Buying USDS as a Canadian Investor

Here are some helpful tips to consider before purchasing USDS:

• Availability of the platform: Make sure the exchange or platform where you will be trading can allow you to purchase USDS and then trade it or exchange it for other cryptocurrency tokens.
• Tax considerations: Cryptocurrency trades are taxable in Canada, so you may want to look up the most recent CRA tax guide.
• Eligibility for yield generation: If you are planning to earn the Sky Savings Rate yield on your USDS holdings, you should first figure out how you can make your USDS into sUSDS, since USDS cannot earn yields.
• Security concerns: Make sure to activate 2FA where possible.

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Converting USDS to Yield Bearings sUSDS

When you have bought USDS and getting a yield is what you want next, then the process may involve you turning your tokens into sUSDS in order to earn the yield associated with the Sky Savings Rate. This should not prove to be difficult at all since the process is carried out via the Sky Protocol platform.

1. First, after purchasing your USDS, navigate to the savings page on the Sky Protocol platform.
2. Your depositing of your USDS to the Sky Savings Rate portal will see you earn your sUSDS.
3. This sUSDS will earn you yield through the Sky Savings Rate, and there will be no need for any more action on your part.
4. In case you decide to withdraw your money, you will be able to turn your sUSDS back to USDS whenever you wish through the platform.

This distinguishes USDS from many other stablecoins like USDC where the holders earn their yield within the platform.

Comparing Fees When Buying USDS and USDC

The information on potential costs might also come in handy in the event that you decide to buy either of the two coins. Exchange via the Peg Stability Module of Sky Protocol would typically happen at the ratio of 1:1 for USDS and the leading stablecoins including USDC because of the low costs of doing the same owing to its predictability.

The process of buying the coin using the services of a centralized exchange would mean that you pay fees similar to other processes of trading, the only difference being in the case of decentralized finance. Going through your choices might help you establish the most appropriate way of purchasing either of the two coins at reduced costs.

Reviewing Your Purchase After Buying USDS

In the event that you have managed to buy USDS, it will be wise to take some time to ensure that the process went accordingly. The majority of exchanges including the Sky Protocol portal will allow you to check your transaction history and know the amount of USDS that you acquired.

You can also verify the accuracy of transferring USDS to your wallet address using a blockchain explorer, as the transaction history will be publicly available on-chain. Such a verification process will be very helpful if you plan to make a significant purchase since it will give you an extra way to check the transaction other than the one presented to you by the wallet/exchange platform itself.

Recording details about your USDS purchases along with dates and amounts might also come in handy if you need to check your portfolio at some point in time in the future.

USDS Market Overview

At the beginning of August 2026, USDS had the onchain circulating supply of 6.37 billion dollars according to Allium’s database of stablecoins that covered Ethereum, Arbitrum, Solana, and Base networks. As stated by Sky Protocol, USDS became the third largest stablecoin in the world after being released in 2024.

The second stablecoin on this list is USDC which remains one of the most popular coins in the crypto market along with being one of the most integrated ones in various exchanges, DeFi protocols and payment systems. Nevertheless, since market information on these two coins can vary from time to time, it would not hurt to check them on some current market tracker such as CoinGecko or CoinMarketCap.

Conclusion

It can easily be found on the market, the purchase may be made through the Sky Protocol Peg Stability Module or through a cryptocurrency exchange or by swapping your already owned DAI tokens. Even though USDS and USDC are usually associated due to the fact that they both are dollar pegged, still these two stablecoins are separate products of different companies with different characteristics.

The differences between USDS and USDC consist in the opportunity for the native yield earning and participating in decentralized governance, as well as the regulated compatibility in the case of USDC. If you are a Canadian investor and you consider trying these stablecoins, then it is necessary for you to learn more about them, their differences, the availability of the particular platform and the tax rules for purchasing any of them.

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